Feeds

Logica axes 1,300 jobs as profits set to be just £240m

225 to go in Blighty

Providing a secure and efficient Helpdesk

Logica is cutting jobs across Europe as it tries to sell its wares in the increasingly gloomy IT services market.

The company warned that it expected profit to now be in the range of £240m to £250m for the year, while Logica's revenue growth prediction for 2011 has also shrunk.

It now expects a climb in sales to be around the 3 per cent mark, compared with an earlier forecast of 5 per cent for the year.

Logica has been struggling to shift its order book from the public sector toward the commercial markets, after the firm's first half-year squeezed margins and deflated operating profits.

The company, which has a global workforce of 41,000, is now admitting that the outlook is much more uncertain and that means jobs will be lost.

It's cutting loose around 1,300 employees at a restructuring cost of £93m.

Jobs in the Netherlands, Belgium, UK and Sweden will be axed, Logica said, with around 225 staff being let go in Blighty alone.

"We deeply regret the impact job losses will have on the people affected in many of our businesses. But we are confident that it is best for our clients, people and shareholders that we face squarely into the difficult economic conditions ahead," said Logica CEO Andy Green.

"This decisive action will result in sustainable margin improvement in 2012, with the benefits starting to flow through in the second half. It will also ensure that a strong Logica can concentrate on helping clients to use technology to cut costs and serve their customers better." ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Business is back, baby! Hasta la VISTA, Win 8... Oh, yeah, Windows 9
Forget touchscreen millennials, Microsoft goes for mouse crowd
SMASH the Bash bug! Apple and Red Hat scramble for patch batches
'Applying multiple security updates is extremely difficult'
Apple: SO sorry for the iOS 8.0.1 UPDATE BUNGLE HORROR
Apple kills 'upgrade'. Hey, Microsoft. You sure you want to be like these guys?
Microsoft WINDOWS 10: Seven ATE Nine. Or Eight did really
Windows NEIN skipped, tech preview due out on Wednesday
ARM gives Internet of Things a piece of its mind – the Cortex-M7
32-bit core packs some DSP for VIP IoT CPU LOL
Microsoft on the Threshold of a new name for Windows next week
Rebranded OS reportedly set to be flung open by Redmond
Lotus Notes inventor Ozzie invents app to talk to people on your phone
Imagine that. Startup floats with voice collab app for Win iPhone
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.